On 14 October in Brussels, the European Automobile Manufacturers’ Association (ACEA) gathered its Light Duty Vehicle Board and issued a stark reminder to EU policymakers: the negotiations on the long-awaited automotive package must reach a firm conclusion early next year. The call comes as manufacturers and their extensive supply chains are already betting on a rapid transition to zero-emission vehicles and need a clear regulatory horizon to lock in investments.
Speaking on behalf of the association, Ola Källenius ACEA president and chief executive of Mercedes-Benz, underlined that European producers are “successfully accelerating their transformation towards zero-emission mobility”. He added that the Union now has a duty to remodel the legislative scaffolding so it can deliver the “triple goal of decarbonisation, economic security and job preservation”. The statement frames the industry’s request as a matter of both climate ambition and social stability.
ACEA pushes EU for swift finalisation of automotive package
The association argues that a package built around rigid penalties will not generate the competitive edge needed for a market-driven transition. Instead, it calls for a framework that respects consumer choice safeguards existing employment, and grants enough lead-time for the development of new value chains that will reinforce Europe’s resilience. In the context of a more balanced trade relationship with China, ACEA stresses that Europe must create pragmatic, competitive conditions that allow home-grown technologies to flourish without punitive shortcuts.
Key policy levers proposed by the industry
A sustainable, long-term policy environment should incorporate realistic flexibilities for meeting CO₂-reduction targets while also recognising the contribution of renewable fuels and green materials. ACEA highlights a five-year “averaging” mechanism slated to start in 2028, which would act as the most cost-free electric-vehicle incentive Europe can offer: national budgets would not be burdened, yet every early EV sale would be rewarded through a credit system. Moreover, the van segment – which currently starts from a lower emissions baseline than passenger cars – requires an adjusted trajectory to keep it on a comparable decarbonisation path.
Incentives for locally produced electric vehicles
The proposed Industrial Accelerator Act (IAA) should align its implementation timetable with the realities of the supply chain, offering additional super-credits to “made in the EU” battery-electric cars and vans. Small-size electric models built within the bloc would obtain extra credits, encouraging manufacturers to scale down vehicle dimensions while keeping production domestic. ACEA also urges that the IAA’s geographic scope reflect cross-border investments made by its members, and that it finds a mechanism to incorporate the United Kingdom, preserving the integrity of the European automotive ecosystem.
Why the automotive sector matters for Europe’s economy
The numbers speak loudly: more than 13.5 million Europeans are employed directly in the automotive field, representing roughly 8 % of all manufacturing jobs in the Union. The industry generates about €427 billion in tax revenue for national governments and delivers an €84.7 billion trade surplus for the EU. Its contribution exceeds 8 % of the Union’s gross domestic product, while annual research and development spending tops €84 billion – roughly a third of total EU R&D outlays. These figures illustrate why a stable, forward-looking regulatory package is not just an environmental necessity but also a cornerstone of Europe’s economic health.
In sum, the ACEA’s message is unequivocal: the Union must act now, offering a balanced mix of market incentives, flexible compliance tools, and support for locally produced electric mobility. Only then can Europe meet its climate pledges, protect jobs and maintain a competitive edge on the global stage.
